Year: 2017

The huge amount of money needed to fund a university degree these days can often leave you not just floundering for cash, but also leave you with a bad credit rating early on in your life, which is a problem that can stay with you for a long time unless you do something about it. Thankfully, though, the same kind of bad credit guarantor loans that are widely available to people already in work can also be applied to students too—indeed, a student with bad credit can sometimes get better treatment than a normal person due to their student status. This is especially true if you can convince a parent or relative (if you’re a younger student) to act as a guarantor for the loan or have your own assets that you can offer up as collateral in the case of mature students. Unsecured bad credit student loans are also available, although these are harder to be approved for due to your bad credit status.

Back to those times when we just a student (that was so long ago!), money was not our general concern—thanks to our government who grant us an incredibly lenient chance for a student loans process system, to which we were able to focus entirely on our studies instead of worrying where our next meal was coming from. Unfortunately, things are very different if you’re a student now and between students having to fund their own tuition fees and then look after themselves on top of that (not to mention the traditional student lifestyle!), things can get tight if you go to university today. So tight, in fact, that you could end up running into serious debt before you’ve even got your foot on the career ladder…

As is traditional for student loans, bad credit student loans and or the same day guarantor loans are repayable once your education is completed; however, it’s important to remember that the interest rate will be significantly higher than a regular loan due to your bad credit status (especially in the case of unsecured loans), meaning that you’ll need to have enough income once you leave university to be able to pay back the loan. You also need to be aware that if you drop out of university before you complete your degree, it’s likely that the entire loan will become repayable immediately so be sure to consider your options carefully before taking out such a loan.

In Summary

Bad credit student loans…

Are easier to get if you have a guarantor or collateral to secure against the money

Can improve your credit rating if you pay them back in a timely manner

Can help even people with bad credit histories get the education they want

Are only repayable once you complete your degree (unless you drop out!)

Will have higher interest rates than regular loans, especially if they’re unsecured

Individual finance has informative articles on bad credit student loans, bad credit guarantor loans and many other aspects of UK finance. It also keeps users up to date with the latest money-saving offers and vouchers through regular email newsletters.

Sometimes, things are beyond our control, such as layoffs or a bad economy. If you happen to be in that situation, even though you have now changed your ways, you may beworried whether or not achieving a bad credit mortgage is possible. Homeownership is the dream of almost everyone—a place to call your own—even people who have bad credit have these dreams, too.Youngsters sometimes make bad decisions that put big black mark against their credit history.

Large Down Payment

Having a large down payment for the home you wish to purchase changes things considerably. It reduces the amount of money that you need to borrow in the first place. What’s more, it shows the lender that you are very sincere about taking a guarantor loans for instance and making the payments. Of course, saving that amount of money shows the lender a large degree of financial responsibility. This kind of show helps them believe that you will pay off the loan despite your record.Click here to see more information.

Knowing Your Credit History and Credit Scores

In the past you have been turned down for a loan and having bad credit was given as the reason for rejection. You need to understand your credit situation yourself. Research on what FICO scores are and how they are derived. Understand why it is at its current level. When you are talking with a potential lender you will be prepared to explain the dark smudges on your credit history.

Probabilities and Possibilities

Getting a bad credit guarantor loans are probably within the realm of possibility even if your creditworthiness is damaged. You just need to know what you need, what to look for, and where to look. So-called sub-prime mortgages offer potential home buyers with bad credit the possibility of financing a home despite their credit histories. Of course, there are a few hoops.

Employment and Salary

Since your credit shows that you are a risk to lenders, they have to have some sort of guarantee. You may have missed payments in the past and they want to know that it is possible for you to successfully make them in the future. That boils down to having a steady job with a decent salary. Lenders like to see that you have had at least three months at the same job, but the longer the time the better. They want to know that after your usual monthly obligations that you have a salary sufficient to cover the cost of the loan.

Unemployed or Insufficient Salary

Those who are unemployed or do not make enough money each month to cover their usual expenses plus the cost of the mortgage cannot presently be granted a bad credit mortgage loan. They will have to wait until their financial circumstances and their job situations have changed. If potential home buyers have recently taken a new job, they should wait three to six months before applying for a bad credit guarantor loans. Again, the longer the better.

Debt-to-Income Ratio

Your debt-to-income ratio is one of the last key to unlocking the mortgage door. People with good scores can be rejected for a home mortgage if they are carrying too much debt. Too many credit cards, lingering student loans, car purchases and liens, such as alimony and child support, all count. The general rule of thumb is usually a 40% amount of debt to 60% discretionary money or money you can use for costs beyond your usual monthly obligations.

It would be a mistake to believe that applying for loans with bad credit guarantor loans history is a lost cause. The truth is that people who have low credit scores do not find it as difficult as they would have in the past. So, securing a loan is moat certainly possible.

What’s more, by thinking cleverly about the options open to them and what terms are realistic, it has become much more possible to secure loans with bad credit. In fact, even those of us with very low credit scores can still feel confident when considering these three loan options.Click here to read more information.

Sponsored Applications

A sponsored application is basically a loan application that includes a guarantor or cosigner. The value that this addition has to those applying for loans with bad credit history against their name is huge. This is because the weight of responsibility is shifted from the borrower to the guarantor.

The trick, however, is to find a guarantor that has an excellent credit history and sufficient income to convince the lender that the loan is guaranteed to be repaid. This is, after all, the whole secret to gaining approval from lenders, regardless of the niche they might be operating in—personal loans, commercial loans, or home loans, same day guarantor loans, etc.

For this reason, the guarantor will be assessed quite closely by the lenders. They must provide proof of income and employment and often they are only accepted if they actually own their own home. Getting $5,000 or $10,000 loans with bad credit is never simple, but with the help of a guarantor, it is even easier.

Long-Term Loans

The chief issue for lenders is whether or not the borrower will be able to make repayments so that they get their money back. The problem for those seeking loans with bad credit history is that the perceived likelihood of meeting those repayments is lower, making lenders reluctant to take on the risk without raising the interest rate considerably.

The reason for such low confidence is that the sum due each month may be too high to be manageable. So, the obvious step towards gaining approval from lenders is to lower the monthly repayments. This means extending the term of the loan, perhaps from 24 months to 36 or even 48 months.

This could result in seeing payments of $600 on a $10,000 loan, for example, slashed to maybe $400. This effectively means that borrowers seeking loans with bad credit hanging over their heads are better able to meet their obligations.

Short-Term Payday Loans

In truth, payday loans are short-term loans with repayment expected next payday. The great advantage of these loans to those seeking guarantor loans instant payout with bad credit history is that the lenders have no interest at all in these histories. All they need is proof of income and a bank account through which to draw repayment automatically on the agreed day.

A payday loan is considered one of the easiest to be approved, as the sum borrowed is secured against the upcoming paycheck. Normally, gaining approval from lenders is heavily dependent on the ability to maintain a repayment schedule, but in this case the repayment is completed in one go.